Thank you for your attention. In order to allow you to receive more messages, we have opened another official account: Mingzhicaijing. Everyone is welcome to add to follow!
Author | Yang Rui
Source | Finance Three Minutes (qgq1818)
Capital winter is coming, salary cuts, layoffs, shrinking the front... Countless companies embark on a difficult road to self-rescue.
is known as the global industrial empire of , and has Foxconn , which has millions of employees, and is no exception.
In November 2018, after Foxconn announced that it planned to lay off 340,000 employees , although the official finally denied it, it still caused an uproar in public opinion.
However, unexpectedly, the reversal came so quickly:
Just three months later, when it was still in the off-season for employment, Foxconn broke out the massive that recruited people on a large scale, which made people at a loss.
layoffs?
recruit?
Who is the real side behind the fog of Foxconn?
1
After the world's major layoffs,
Foxconn fell into a labor shortage
unbelievable!
2. March should have had fewer orders in the company. During the off-season for employment, However, Foxconn, known as the Apple OEM factory, suddenly launched a global large-scale recruitment model.
Recently, a media in Taiwan Province of China revealed that has 400,000 employees in Zhengzhou, and is also Apple's largest OEM factory in China, and plans to recruit about 50,000 people in China.
and Foxconn Shenzhen factory will also plan to recruit 20,000 people .
is not just Zhengzhou and Shenzhen, but also Foxconn Taiyuan, Foxconn Hangzhou, Foxconn, Kunshan Foxconn, and Foxconn Huai'an are also starting to move.
was bothered by layoffs the previous second, and the next second I was happy that the orders were exploding and the labor shortage was short.
's reversal is so fast that it's simply unexpected.
Some Foxconn recruitment supervisor revealed that in order to solve the labor shortage, some factories have not hesitated to significantly increase the recommendation reward for internal recruitment employees, from the former 300 yuan per person to 500 yuan per person.
However, even if such a generous reward is offered, most of the Foxconn factories still cannot recruit people.
From the wave of layoffs to labor shortage, it was not the big fund owner behind Foxconn that saved Apple, but , but suddenly received an order for Huawei mobile phones on a large scale.
As early as mid-2018, after Apple's sales performance suffered a tragic Waterloo, Foxconn turned its attention to domestic mobile phones that are accelerating their rise.
, especially Huawei, which is conquering cities and lands all over the world.
. Around the Spring Festival, Huawei's mobile phone orders increased significantly, resulting in a serious shortage of workers on the Foxconn production line.
If delivery is not timely due to workers shortage, Foxconn will not only bear huge liquidated damages, but will also lose Huawei, a larger customer.
This is absolutely unbearable for Foxconn, who has just recovered from the depravity of Apple.
is crazy about robbing people and recruiting workers on a large scale, which is a last resort.
2
Behind the layoffs and recruitment of Foxconn:
Apple declines, Huawei rises
Foxconn, known as the world's largest foundry, can never escape Apple's tags.
It is no exaggeration to say that Foxconn and Apple are almost: prosper and loses together.
The financial storm that swept the world ten years ago, even a giant as huge as Lehman Brothers could not stop the tsunami-like negative attack. From its peak to its collapse, it seemed that it only took a moment.
When most companies are struggling in the sudden wave, only Apple led by Jobs is not only unscathed, but has staged a Jedi counterattack. As global consumer demand for electronic products shrinks, Foxconn's sales remain strong.
Apple urgently needs a strong OEM factory to compress production costs, and Foxconn is also salivating about Apple's huge order demand.
hit it off, in 2010, Foxconn won Apple's iMac order. Since then, it has naturally become the royal manufacturer of Apple's iPad and iPhone . Under the strong alliance of
, it solved the worries of mass production of mobile phones. Combined with Jobs' advanced leadership thinking, Apple also began to counterattack, becoming the world's most profitable mobile phone manufacturer, and its sales have also improved by leaps and bounds.
Foxconn, which holds the big tree of Apple, has leaped from the former 10 billion dollar empire to the world's largest electronics industry manufacturer and a super manufacturing giant with millions of employees in just less than ten years.
Foxconn, a company, accounts for 3.9% of China's GDP exports and 3.6% of imports.
and all this depends on Foxconn's overall revenue coming from Apple.
However, flowers are not popular for a hundred days, and the most awesome company cannot always stand out. The sudden turn of
occurred in mid-2018. Apple expected a new product release with high expectations, but it was cold in the global market, especially the luxury goods strategy, which revealed the biggest black swan in the Chinese market.
Apple sales were lower than expected and orders fell, which was almost an unbearable blow to Foxconn, which puts eggs on a basket.
However, under the collapse of the nest, there is no end to the egg.
While Apple fell, how could Foxconn, who kidnapped his fate on the unified chariot, be able to survive alone?
Although the 340,000 people worldwide layoffs may be exaggerated, it has also been denied by the official.
However, local small-scale layoffs are indisputable facts.
While Apple is declining, Huawei, which has "no day to make a comeback without independent research and development", has frequently staged a shocking counterattack. Not only does its revenue exceed 700 billion mark, but its mobile phone sales have also skyrocketed, becoming the veritable king of domestic mobile phones.
This is still under the siege of Western forces.
Huawei mobile phone sales exploded, which will inevitably lead to a surge in demand for OEM.
Foxconn needs to find orders for large customers outside of Apple, and Huawei is also interested in Foxconn's strong production capacity.
hit it off, Huawei's orders came like the water of the Yellow River.
Foxconn, which has just laid off employees, has also reopened the recruitment mode.
3
Foxconn workers have a high mobility:
The strong rise of artificial intelligence
Employees millions, and labor costs have always been Foxconn’s largest expenditure.
, especially after the domestic demographic dividend ushered in a turning point, Foxconn's employee spending rose, which led to a continued decline in profit margins.
The public prospectus of Foxconn shows that from 2015 to 2017, Foxconn's revenue soared from 272.8 billion to 354.5 billion yuan.
However, the net profit margin has been falling all the way, falling from 5.26% to 4.48%.
's such a low profit level once made Foxconn founder Guo Taiming difficult to describe.
At the shareholders' meeting in mid-year last year, Terry Gou said something amazing: "Foxconn will replace 80% of the manpower with robots."
means that the first million employees at the top of will exceed 800,000, and will be replaced because of Foxconn's robot strategy.
Don’t underestimate the courage of Terry Gou and Foxconn. As early as ten years ago, Terry Gou said that not only Foxconn, but also the entire Hon Hai Group , within 5 years, will remove 80% of its employees. If it cannot be achieved in 5 years, it will be calculated in 10 years, because technology has developed to this level.
Now the ten-year agreement has arrived. Foxconn led by Terry Gou has accelerated its journey to abandon labor and welcome the intelligent era, running wildly.
As early as 2011, Foxconn had added 1 million robots to the assembly line to improve production efficiency, thereby replacing assembly line employees.
In 2015, Terry Gou announced that will achieve 30% automation in 2020.
A year later, Foxconn claimed that it had deployed 140,000 html robots in mainland factories, distributed in production bases such as Zhengzhou, Kunshan, and Jiashan, replacing workers with dirty, dangerous and boring work.
not only embraces intelligence, but also accelerates the transformation to high-end through a series of capital operations.
In 2018, when the Japanese electronics giant was in trouble and on the verge of bankruptcy, Foxconn took over the high price of US$3.5 billion, gaining 66% of the shares. also won the world's most advanced LCD panel manufacturing technology. After
, Foxconn and Sharp jointly formed a team of more than 4,000 people to support the establishment of their own mobile phone brands.
From an OEM manufacturer to focusing on building independent mobile phone brands, chips are a threshold that Foxconn cannot avoid if it wants to be controlled by others.
After arduous negotiations with Zhuhai , Foxconn finally won about US$9 billion (RMB 60 billion) to build a chip factory locally.
It is obvious that Foxconn, a subsidiary of Terry Gou, is no longer willing to become the "Office King", but is actively seeking a strategic transformation from "manufacturing services" to "technology services".
4
Conclusion
In this world, there are no companies that will succeed forever, only companies that change with the times and follow the rules.
Whoever can adapt to the times and grasp the pulse of the times will have the opportunity to stand at the peak of the times. Whoever misses the times and cannot see the times clearly will be abandoned by the times.
Even the founder of RT-Mart, which was once extremely prosperous and invincible in the world, said when he left his job: I defeated all the opponents, but lost to the times.
Once upon a time, with China's huge demographic dividend, Foxconn hugged Apple tightly and successfully staged a Jedi counterattack, becoming the world's largest OEM factory in one fell swoop.
However, with the advent of the tide of the artificial intelligence era, production efficiency has greatly improved, and the impact of technology on labor has caused Foxconn to suffer.
accelerates the upgrade from the low-end industrial chain to the upstream, which is a must for almost every ambitious enterprise.
Foxconn is no exception.
has now gotten rid of its dependence on Apple and turned to Huawei, focusing on independent brand research and development, expanding the proportion of robots, and building factories to develop chips. Perhaps it is just the beginning of Foxconn's second rise.
Looking forward to Foxconn's future will have good news on the road to transformation.
